Singaporeans Shifting Away from Long-Term Insurance
A recent Sun Life Asia Financial Resilience Index, based on 1,000 surveyed Singaporeans, highlights a 19% decline in life‑insurance coverage and an 18% drop in investment‑linked products year‑on‑year Inflation is a pressing concern—90% of respondents report feeling its effects, and 42% struggle to cover monthly expenses. Even high earners aren’t immune, with 89% hit by rising prices.
Long-term financial planning has taken a backseat: only 8% plan more than 10 years ahead (just 5% among high‑income groups), while 57% have no plan beyond 12 months.
Sun Life Singapore’s CEO emphasizes that insurance remains vital for long-term resilience, especially when costs surge
What we really need to do?
Raise Financial Awareness
Launch nationwide campaigns emphasizing the long-term value of insurance, especially during inflationary periods. Use relatable scenarios to highlight the risks of being uninsured.Flexible Insurance Products
Insurers can offer tiered plans with adjustable premiums to cater to varying income levels. Micro-insurance or pay-as-you-go models can help lower-income groups stay protected.Financial Planning Support
Partner with financial advisors or fintech platforms to provide free or subsidized planning tools that help individuals build long-term goals beyond 12 months.Policy Incentives
Introduce tax breaks or government subsidies for essential insurance plans, encouraging uptake even among cost-sensitive consumers.Educate Employers
Encourage employers to enhance group insurance coverage or co-fund personal plans for staff, especially in SMEs.